Potential Money
Andre Willers
19 Sep 2014
Synopsis :
The concept of Potential Money is used to show the mechanics
of Bubble inflation .
Discussion :
1.Potential Money (PM) of an Amount (M) is the sum of all
the money that can be made by any scheme using M .
2.PM can be infinite , but is usually limited by the
imagination of the user .
3. Examine case of two parties , Seller (S) and Buyer (B)
4. The Buyer makes an offer to the seller , who can accept
or reject the offer .
5. The crucial point : there is a time-delay which causes
imbalances in the Potential Money of the two parties .
6. The person making the offer (the Buyer) is at a
disadvantage insofar as it appears as if he has less Potential Money .
Potential Money gradients
per transaction
|
||||||
Buyer
|
Transaction
|
Direction
|
Seller
|
|||
-r
|
Offer in transit
|
-->
|
0
|
|||
-r
|
+r
|
|||||
-r
|
Accept in transit
|
<-- o:p="">-->
|
0
-r
Reject in transit
<-- o:p="">-->
0
0
0
Balance iro buyer
-r
Offer in transit
-r
Accept/reject in transit
Balance iro seller
0
Always
During transit times ,
the Buyer is at a potential disadvantage
7.What does this mean ?
An experienced negotiater or salesman will always try to get
the other party to make the initial offer .
“What do you want for it?”
8.The interest on the Potential Money in transit acts as an
attractor and also gets added to the Potential Money of the party .
Since PM can be very large and busily in transit , this will
act like an inflator to blow bubbles in the values of Potential Money , with
runaway
Positive feedback .
Monetary Bubbles seem to be inherent in any type of transaction
.
9.Potential Money interest rate :
Since this is the major culprit , managing it seems to be
the best option .
10 Taxation :
Taxing Potential Money Interest seems promising , though I
can hear the screams now .
9. This model can be easily adapted to physics .
Have potential fun .
Especially the Potential tax that has to be paid in real
money !
Potentially yours
Andre
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